Mobile Commerce is the usage of a mobile device to access a web site or app for the purpose of buying goods/services and remotely executing a payment via the web site/app's payment service. Mobile Commerce is constantly growing in popularity as smartphones and tablets become more prevalent. Since mobile commerce transactions (mCommerce) are remote transactions with respect to the vendor, they are considered Card Not Present (CNP transactions) and incur a higher processing fee than transactions at a physical Point of Sale (POS), called Card Present (CP) transactions. The higher processing fees are assessed in the CNP transactions because the cardholder and the payment instrument are not physically present at a certified POS device at the time the payment is made. mCommerce transactions are also riskier transactions since it is easier to commit fraud by stealing account information and using it to make remote payments where the actual card is not needed to complete a CNP transaction.
There is no current solution to this problem. There are some solutions around user authentication aimed at proving the identity of the user and possession of a credit card, but for mCommerce transactions and similar transactions, the actual card is not used to conduct the transaction as is the case of a CP transaction through a physical, PCI (Payment Card Industry) certified POS, so these transactions are still considered CNP transactions.